Amazon fires more affiliates over Internet tax threats

Amazon's squabble with state governments which want to collect sales taxes from its shoppers continues, and now it's really heating up. The trouble began in 2008, when New York passed a law requiring Amazon (and other retailers) to collect sales taxes if they had "affiliates" in the state. Amazon's affiliate program lets Internet users who operate their own websites sell merchandise via Amazon and get paid a commission for it. New York claimed that having these local affiliates meant Amazon was operating a physical "nexus" in that state, thus subjecting any sales there to New York state sales tax. Amazon sued the state, and lost. In defeat, the company now collects the tax on all New York sales, likely much to the chagrin of New York residents. Overstock, another company with a large affiliate program, didn't play ball,... [read full story]                    

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